The price of Bitcoin and some other cryptocurrencies in the market fell on the last day. The world’s two largest cryptocurrencies are down 7.6% and 8%, respectively. There’s a big possibility that the drop in prices was related to the drop in options at around $ 3.8 billion. Most experts are at the limit of whether or not it was effective.
Bitcoin crashed leading traders to inquire about options expiration
Bitcoin options have always been derivative contracts that give buyers this fundamental right to buy the assets at a certain price at some point. When most of the options expire, the cryptocurrency market can become volatile. This is certainly because most traders would either throw off or hold on to the crypto purchases, which are quite potent. According to the news, a number of options expired on the last Friday in May, causing a fairly widespread collapse in the market.
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To date, Bitcoin represents a total of $ 2.6 billion, while Ethereum has a total value of $ 1.2 billion in options. This is quite a record in terms of options contracts – coupled with the number of options contracts that expire for Ethereum in the course of a single day. Incidentally, both assets are also struggling hard, which has led traders to consider selling the shares.
Ki Young Ju, the CEO of CryptoQuant, has stated that it is quite plausible that this is the largest option expiry for the second largest cryptocurrency in the world. He also believes that there has been multiple evidence of the existence of a bear market as most of the supply of Ethereum has steadily increased.
However, that hasn’t stopped the markets from having a rough time. Bitcoin fell below $ 30,000 for the first time since January on Tuesday. Ethereum’s value also went below $ 2,000.
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